BOK Chief says trade row with Japan could bring further cut in growth outlook for 2019
- 5 years ago
이주열 "日규제 악화 시 경제 부정적…성장률 추가조정 가능"
And the trade spat with Japan is likely to weigh on Korea's growth... as the Bank of Korea has hinted that the country's growth outlook for this year might have to be cut.
Kim Mok-yeon has more.
Bank of Korea Chief Lee Ju-yeol spoke Tuesday of a possible cut in the central bank's growth outlook for this year if Seoul's trade dispute with Tokyo continues.
Addressing the parliament's finance committee, Lee said that the BOK's growth projection of 2-point-2 percent announced last week did not sufficiently reflect Japan's export restrictions.
"If Japan's export curbs become more severe, that will have a negative impact on the economy. In this case, the economic growth outlook could be downgraded."
When asked by an opposition party lawmaker whether the BOK could cut the key rate within this year, Lee said that it is too early to tell since developments in the economic conditions of financial markets at home and abroad should be taken into consideration.
But when asked directly about the effects of Japan's export curbs on the financial market, the BOK chief said that the bank has been closely monitoring the situation over the past three weeks, but there is no need for serious concern, as there were no unusual movements in the markets.
Lee also touched upon the importance of swiftly passing the government's supplementary budget proposal, which has been pending at the National Assembly for nearly three months.
He said that generally, around 8-point-5 billion U.S. dollars in extra budget spending could raise the economic growth rate by zero-point-one percent.
But even if the budget bill is passed, delays in its execution will reduce its effectiveness on growth.
Kim Mok-yeon, Arirang News.
And the trade spat with Japan is likely to weigh on Korea's growth... as the Bank of Korea has hinted that the country's growth outlook for this year might have to be cut.
Kim Mok-yeon has more.
Bank of Korea Chief Lee Ju-yeol spoke Tuesday of a possible cut in the central bank's growth outlook for this year if Seoul's trade dispute with Tokyo continues.
Addressing the parliament's finance committee, Lee said that the BOK's growth projection of 2-point-2 percent announced last week did not sufficiently reflect Japan's export restrictions.
"If Japan's export curbs become more severe, that will have a negative impact on the economy. In this case, the economic growth outlook could be downgraded."
When asked by an opposition party lawmaker whether the BOK could cut the key rate within this year, Lee said that it is too early to tell since developments in the economic conditions of financial markets at home and abroad should be taken into consideration.
But when asked directly about the effects of Japan's export curbs on the financial market, the BOK chief said that the bank has been closely monitoring the situation over the past three weeks, but there is no need for serious concern, as there were no unusual movements in the markets.
Lee also touched upon the importance of swiftly passing the government's supplementary budget proposal, which has been pending at the National Assembly for nearly three months.
He said that generally, around 8-point-5 billion U.S. dollars in extra budget spending could raise the economic growth rate by zero-point-one percent.
But even if the budget bill is passed, delays in its execution will reduce its effectiveness on growth.
Kim Mok-yeon, Arirang News.